Cheque processing firm to close two Scottish sites

Intelligent Processing Solutions Ltd said new Image Clearing System for cheques to be introduced next year will have "huge impact" on its operations and it plans to consolidate its nine UK centres down to two - Northampton and Milton Keynes

Cheque processing firm Intelligent Processing Solutions Limited (iPSL) is to close its Scottish operations in Edinburgh and Clydebank.

The struggling financial services company, a market leader in domestic cheque processing in the UK employing around 1,600 staff, plans to consolidate its nine current UK processing centres down to two - Northampton and Milton Keynes.

The union Unite said it understand the sites in Edinburgh and Clydebank are earmarked for closure along with sites in Bootle, Bradford, Copley, Chelmsford and Camberley.

A total of 600 jobs are understood to be at risk, though iPSL has so far refused to confirm the number of people it employs in Edinburgh and Clydebank.

IPSL said the recent introduction of the Image Clearing System (ICS) in October 2017 will allows banks and building societies to exchange images of cheques instead of moving paper around the country, which will speed up clearing.

The company said the introduction of ICS “will have a huge impact on the current cheque clearing process”, which will “remove the requirement for remote data capture and processing, therefore reducing site requirements and a subsequent reduction in staffing numbers”.

IPSL added: “This week we shared with our employees planning assumptions regarding our future site strategy and the potential consolidation of our nine existing operational sites to two during 2018.

“These plans are subject to change and are still to be agreed by iPSL clients and Board. “IPSL remains committed to keeping our employees informed and in the interest of being open, honest and transparent, we have provided this further update at this early stage to give them as much time as possible to prepare for any proposed changes to our ways of working.

“Our recognised unions, Unite and CWU are fully engaged and aware of these proposals and planning assumptions.”

Dominic Hook from Unite, said: “This consolidation strategy is deeply disappointing and the impact will be felt widely.

“This proposal will leave a workforce of just over 700 at iPSL which handles around 80 per cent of cheques issued in the UK each year.”

He added: “The tide of digitalisation across the financial services brings with it huge challenges as organisations have to adapt the way they work.

“The changing face of cheque processing, with new digital imaging, has brought considerable difficulties for this industry.

“Unite wants to see iPSL make the necessary investment through new technology to secure as many jobs as is possible.

“This news will be a bitter blow for iPSL colleagues and Unite has pressed the company to provide the workforce with support and guidance with two training programmes and outplacement support to be offered to staff.”